Medbox Secures Financing To Fund Growth
LOS ANGELES, July 28, 2014 /PRNewswire/ -- Medbox, Inc. (OTCQB:MDBX) (www.medbox.com) (the "Company"), a leading dispensary infrastructure/licensing specialist, patented technology provider, and partner to the cannabis industry, announced today that it has entered into a securities purchase agreement with accredited investors pursuant to which the Company agreed to sell, and the investors agreed to purchase, in a private placement transaction, convertible debentures in the aggregate principal amount of $3,000,000, in three tranches, each in the amount of $1,000,000. The initial closing under the Purchase Agreement, for Debentures in the aggregate principal amount of $1,000,000, occurred on July 21, 2014.
Medbox intends to use the net proceeds to accelerate the development and growth of its current business pipeline in key target markets within the U.S. In addition, the Company intends to apply a portion of the net proceeds for general corporate purposes, which may include working capital, continued investment in geographic expansion, as well as research and development.
For transaction details please see the Company's 8-K filing by clicking on the link below.
Medbox 8-K Filing
Mr. Guy Marsala, Medbox CEO, commented, "I am excited to announce this financing which will be used to turn our robust pipeline into revenue, and to continue expanding our business in other key target markets. Medbox is building what we believe to be the best positioned and managed company in the industry, and by properly capitalizing the business we can truly reward our shareholders."
The securities sold by the Company in the private placement were not registered under the Securities Act of 1933, as amended (the "Securities Act"), and were sold in reliance upon exemptions from the registration requirements of the Securities Act pursuant to Regulation D promulgated under the Securities Act. Therefore, such securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and any applicable state securities laws. This press release does not constitute an offer to sell any securities or a solicitation of an offer to purchase any securities.
About Medbox, Inc.
Medbox, Inc. ("MDBX" or the "Company") is the leading dispensary infrastructure and licensing specialist, patented technology provider, and partner to the cannabis industry. Headquartered in Los Angeles, CA, Medbox, through its wholly owned subsidiary, Medicine Dispensing Systems, offers its patented systems, software and consulting services to pharmacies, alternative medicine dispensaries and local governments in the U.S. In addition, through its wholly owned subsidiary, Vaporfection International, Inc. (www.vaporfection.com), the company offers an industry award winning medical vaporizer product. Medbox, through its newly established subsidiaries, is developing the following ancillary services tailored to the alternative medicine industry: merchant services and armored transport for cash deposits, cannabidiol research and development, real estate acquisitions and subsequent lease programs to alternative medicine dispensaries, and alternative medicine dispensary management services.
The statements in this press release constitute forward-looking statements within the meaning of federal securities laws. Such statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, such forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Potential risks and uncertainties include, but are not limited to, technical advances in the industry as well as political and economic conditions present within the industry. We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward looking statement was made.
For more information on Medbox, please call (800) 762-1452.
SOURCE Medbox, Inc.